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How to read the foreign exchange K-line chart to know the ups and downs, and how to see the short and long positions of the K-line?

2022-01-17
2637
  Through the K-line chart, we can see the price trend of foreign exchange, and then adjust the investment transaction, so as to achieve better profits. But these are based on the relevant skills we have already mastered in the candlestick chart. So how to look at the k-line chart to know the ups and downs, and how to see the short and long positions of the k-line? This article will introduce to you.
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  How to read the K-line chart to know the ups and downs
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  The K-line chart is divided into daily K-line, weekly K-line and monthly K-line, that is, a long-term fluctuation pattern composed of countless K-lines. Each bar of these candlesticks represents price fluctuations for a different unit of time. Daily K-line: Represents price fluctuations every day; Weekly K-line: Represents weekly price fluctuations; Monthly K-line: Represents monthly price fluctuations. 1. Look at the color of the K line. The positive line (red) represents the rise, and the negative line (green) represents the decline. In the absence of news, the price moves in the original direction. Therefore, the Yang Xian represents that there will be inertia to continue to rise in the next time period, while the Yang Xian is the opposite. Of course, we also need to analyze all kinds of information, good information will rise, and bad information will be the opposite.
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  Depending on the length of the shadow line, the shadow line is usually a signal of a turning point in volatility. In the K-line, the longer the shadow line is pulled in one direction, the greater the negative force, and the greater the probability that the stock price will fluctuate in the opposite direction. At this point, we should analyze whether the stock is undergoing a correction or a top turn. Adjust our strategy according to different situations.
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  Look at the size of the column. The length of the column represents the power. If the positive line is large, it means that the upward momentum is strong, and the negative line is large, and vice versa. However, we first analyze how much the stock's rising or falling momentum is, and whether the volatility is too large, and whether it will quickly consume the momentum and cause volatility to reverse.
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  How does the k-line look at the bears and bulls
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  1. Forex speculation - long arrangement of K-line chart and moving average chart
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  Performance: The short-term moving average with a smaller parameter is above the long-term moving average with a larger parameter, and the moving average diverges upward.
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  Actual combat: The K-line is in a long arrangement, indicating that new investors in the short term are willing to enter the market at a price higher than the long-term average cost. It also means that long-term holders have made a profit. This kind of profit effect will affect investors who have not entered. Generally speaking, the sooner you buy, the more profitable you will be, so the market will form a bullish atmosphere.
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  2. Forex speculation - short arrangement of K-line chart and moving average chart
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  Performance: The short-term moving average with smaller parameters is below the long-term moving average with larger parameters, and the moving average diverges downward.
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  Actual combat: The K-line is in a short arrangement, which means that long-term holders have already made losses. This loss effect will affect investors who have not entered, and the later they buy, the cheaper they will be, thus forming a bearish atmosphere in the market.
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  In the market, when the moving average line and the K-line of the day (that is, the daily line), the emergence of long and short lines is the clearest time for the market situation. Investors can generally choose to enter the market or exit decisively based on their own circumstances.
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  Now everyone should know how to read the candlestick chart to know the ups and downs, and how to see the bears and bulls on the candlestick. To sum up, the K-line chart has important reference significance. Whether it is a novice or a veteran of foreign exchange investment, you should pay attention to the K-line chart and use it flexibly, so that foreign exchange investment will be more stable.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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